Jul 28

Daily Market Commentary : 27th July 2016

Stock market in India ended with modest gains on Wednesday amid a highly volatile trading session. Indices slipped sharply lower in the first half with the Nifty slipping below the 8600 mark. However as the day progressed benchmarks stabilized and staged a smart recovery in the last half an hour led by gains in the telecom, auto, telecom and banking stocks. The pharma, FMCG, consumer durables and realty stocks. Nifty closed with a gain of 25 points at 8,616, while BSE Sensex ended with a gain of 48 points at 28,024.

On the global front, Asian shares closed mixed. Japan’s Nikkei and Hong Kong’s Hang Seng gained between 0.50%-1% while China’s Shanghai Composite closed in red.

Dabur gained 1.4% after the company reported 11.8% rise in net profit at Rs.292.80 crore for the quarter ended June 30, 2016 against Rs.261.84 crore in the corresponding quarter a year ago.

Zee Entertainment rose 2.8% to Rs.487 on BSE. The company has posted a net profit of Rs.1703.60 million for the quarter ended June 30, 2016 as compared to Rs.1376.80 million for the quarter ended June 30, 2015.

Dr Reddys Laboratories dropped 10% to Rs.2988 on BSE. The country largest car maker will start selling its first light commercial vehicle (LCV) – Super Carry towards the end of August. The company has posted a net profit after taxes and share of profit of associates of Rs.1535 million for the quarter ended June 30, 2016 as compared to Rs.6474 million for the quarter ended June 30, 2015.

Maruti Suzuki India advanced 1.6% to Rs.4559 on BSE. The company has posted a net profit of Rs.14,862 million for the quarter ended June 30, 2016 as compared to Rs.12,081 million for the quarter ended June 30, 2015.

Shree Renuka Sugars soared 11% after the company has informed BSE that under the Judicial Protection Law (11.101/2005 Recuperacao Judicial), the designated court in Sao Paulo, Brazil has on July 26, 2016, approved the Re-organisation Plan of the Company’s subsidiary viz., Renuka Vale do Ivai S/A (Renuka VDI).

Adf Foods rallied 13% to Rs.109 on BSE. The company experienced a spurt in volumes by more than 24.45 times. The company’s has approved a buyback of Equity Shares at a price not exceeding INR 125 per equity share of Rs. 10/- each for an aggregate amount not exceeding INR 18 crore.

Ingersoll-Rand (India) Ltd jumped 5% to Rs.756 after the company reported its net profit at Rs.15.8 crore for the quarter ended June 30, 2016 as compared to Rs.7.2 crore for the quarter ended June 30, 2015.

Ambuja Cements slipped 1% to Rs.267 on BSE. The company has posted a net profit of Rs.3995.10 million for the quarter ended June 30, 2016 as compared to Rs.2263.50 million for the quarter ended June 30, 2015.

PI Industries climbed 3.4% to Rs.762. The company has posted a net profit of Rs.1268.60 million for the quarter ended June 30, 2016 as compared to Rs.858.70 million for the quarter ended June 30, 2015.

Educomp Solutions Limited surged 5.5% to Rs.14.05 after the company has accorded its approval to divest its entire shareholding in Vidya Mandir Classes Limited (being 67% shareholding of VMCL), a subsidiary of the Company and Educomp Learning Hour Private Limited, a step down subsidiary of the Company (hereinafter collectively referred to as the “Sale Share”)- by executing the share purchase agreement dated July 25, 2016 with the buyer.

USDINR trade today trading up nine paise at 67.18 per US dollar.

Out of 1,494 stocks traded on the NSE, 720 declined and 717 advanced today.

Top 5 Nifty Gainers: Asian Paints (7.41%), Maruti Suzuki (1.58%), SBI (1.12%), Coal India (1.09%) and ITC Ltd (0.95%).

Top 5 Nifty Losers: Tata Steel (-1.92%), L&T (-1.26%), Infosys Ltd (-0.92%), Hind. Unilever (-0.50%) and Wipro (-0.47%)

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